TOKYO (Reuters) -Nippon Steel, Japan’s biggest steelmaker, on Thursday beat estimates, but posted a 20.8% decline in net profit for the year ended in March to 549.4 billion yen ($3.53 billion) because of losses on inactive facilities.
Nippon Steel had been expected to post a net profit of 464.6 billion yen, according to a LSEG poll of analysts.
For the year ending in March 2025, Nippon Steel forecasts a net profit of 300 billion yen because of continuing losses on inactive facilities, and as it expects domestic and overseas steel demand to stay low.
The company reiterated that it planned to close its $15 billion deal to buy U.S. Steel by the end of this year, pending U.S. approval. Its forecast for the fiscal year result excludes acquisition of U.S. Steel.
In December, Nippon Steel offered to take over the iconic U.S. Steel – an approach met with resistance by both President Joe Biden and candidate Donald Trump, and by the United Steelworkers union.
Nippon Steel, the world’s fourth-largest steelmaker, has pledged to move its U.S. headquarters to Pittsburgh, where U.S. Steel is based, offered specific commitments on job security and additional investments if the deal goes through.
This month, the U.S. Department of Justice requested more details and documentary materials as part of an antitrust review of the deal. The deal was already approved by the European Commission.
To redeem subordinated bonds issued in September 2019 and to strengthen its financial position amid the proposed takeover deal, Nippon Steel plans to raise up to 250 billion yen via subordinated syndicated loans and public subordinated bonds, it said on Thursday.
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